Business Report :
Private sector credit growth declined further to 9.75% in August in Bangladesh amid liquidity crisis, reduced lending capacity of banks and persistent economic challenges.
The growth in August was the lowest after that in October 2021 when it was at 9.44%.
As per Bangladesh Bank data, private sector credit growth reached to the current level from 9.82% in July and that of 10.57% in June.
In August, banks disbursed Tk1,495,000 crore to the private sector.
According to the central bank data, the amount of excess cash liquidity in banks dropped to Tk11,000 crore in July.
Additionally, the rise in distressed assets within banks has eroded their capacity for loan disbursements, with the total distressed assets in the country’s banking sector reaching Tk377,922 crore as of December 2022.